Key Takeaways
- • Virtus Investment Partners (NYSE: VRTS) reported total assets under management of $152.2 billion at June 30, 2026, up from $149.0 billion in the prior quarter, driven by market performance and positive net flows in ETFs and wealth management.
- • Net outflows narrowed to ($5.6) billion from ($8.4) billion in the prior quarter, with institutional net outflows improving to ($0.7) billion from ($3.2) billion.
- • GAAP net income attributable to Virtus was $6.68 per diluted share, aided by $2.65 of realized and unrealized investment gains, versus $1.05 in the prior quarter.
- • Adjusted net income per diluted share was $5.54, up from $5.38, with adjusted operating margin of 26.1% compared with 24.0% in the prior quarter.
- • Gross debt fell to $427 million from $448 million, and net debt declined to $251 million, or 0.9x EBITDA.
Summary
Virtus Investment Partners, Inc. (NYSE: VRTS) reported financial results for the three months ended June 30, 2026. Total assets under management rose to $152.2 billion from $149.0 billion in the prior quarter, attributed to market performance and positive net flows in exchange-traded funds and wealth management, partially offset by net outflows in other products. The company also serviced $1.7 billion of other fee-earning assets not included in AUM.
Total sales increased 5% to $6.1 billion from $5.8 billion. Institutional sales rose to $2.2 billion from $1.2 billion, primarily reflecting a large inflow into a global listed real estate strategy. Retail separate account sales declined to $1.2 billion from $1.4 billion, while open-end fund sales decreased 14% to $2.6 billion, including $0.6 billion of ETFs. Net flows of ($5.6) billion improved from ($8.4) billion, with outflows concentrated in quality-oriented equity strategies partially offset by positive flows into alternatives, fixed income, and multi-asset. ETF net flows were $0.3 billion.
On a GAAP basis, operating income increased to $27.3 million from $15.4 million on a 1% revenue increase and lower operating expenses, the latter reflecting the reversal of prior-quarter employment expense seasonality. Net income attributable to Virtus was $6.68 per diluted share, including $2.65 of realized and unrealized gains on investments and $0.50 of fair value adjustments to minority interests. The effective tax rate fell to 16% from 54%, reflecting the shift from unrealized losses in the prior quarter to unrealized gains.
On a non-GAAP basis, revenues as adjusted rose 1% to $183.6 million, driven by a higher average fee rate partially offset by lower average AUM. Employment expenses as adjusted were $102.1 million, including a $3.8 million discrete non-cash charge tied to accelerated multi-year stock-based awards for retirement-eligible employees. Adjusted operating income was $47.9 million at a 26.1% margin, and adjusted diluted EPS was $5.54, including $0.43 from the discrete item. The company cited the full-quarter contribution of Keystone National Group.
Capital position: cash and equivalents reached $176.2 million, up from $136.6 million, and the company repurchased 70,097 shares for $10.0 million while paying $16.3 million in dividends. Gross debt was $427 million after a $20 million revolver repayment, and net debt was $251 million, or 0.9x EBITDA. Management hosted a conference call on July 30, 2026, at 10 a.m. Eastern.
Total sales increased 5% to $6.1 billion from $5.8 billion. Institutional sales rose to $2.2 billion from $1.2 billion, primarily reflecting a large inflow into a global listed real estate strategy. Retail separate account sales declined to $1.2 billion from $1.4 billion, while open-end fund sales decreased 14% to $2.6 billion, including $0.6 billion of ETFs. Net flows of ($5.6) billion improved from ($8.4) billion, with outflows concentrated in quality-oriented equity strategies partially offset by positive flows into alternatives, fixed income, and multi-asset. ETF net flows were $0.3 billion.
On a GAAP basis, operating income increased to $27.3 million from $15.4 million on a 1% revenue increase and lower operating expenses, the latter reflecting the reversal of prior-quarter employment expense seasonality. Net income attributable to Virtus was $6.68 per diluted share, including $2.65 of realized and unrealized gains on investments and $0.50 of fair value adjustments to minority interests. The effective tax rate fell to 16% from 54%, reflecting the shift from unrealized losses in the prior quarter to unrealized gains.
On a non-GAAP basis, revenues as adjusted rose 1% to $183.6 million, driven by a higher average fee rate partially offset by lower average AUM. Employment expenses as adjusted were $102.1 million, including a $3.8 million discrete non-cash charge tied to accelerated multi-year stock-based awards for retirement-eligible employees. Adjusted operating income was $47.9 million at a 26.1% margin, and adjusted diluted EPS was $5.54, including $0.43 from the discrete item. The company cited the full-quarter contribution of Keystone National Group.
Capital position: cash and equivalents reached $176.2 million, up from $136.6 million, and the company repurchased 70,097 shares for $10.0 million while paying $16.3 million in dividends. Gross debt was $427 million after a $20 million revolver repayment, and net debt was $251 million, or 0.9x EBITDA. Management hosted a conference call on July 30, 2026, at 10 a.m. Eastern.
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